Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Business and Policy Studies
Series Vol. 16 , 13 September 2023
Open
Access | Article
How to Use Different Hedging Strategies to Make Your Company Profitable
* Author to whom correspondence should be addressed.
Abstract
The profitability of investors through arbitrage decisions is a topical issue in the economy, and some researchers have found that the study of corporate stocks bonds and markets has a significant impact on investors' hedging, however, there is a lack of uniform explanation of the operational methods and scope of influence behind it. Therefore, this article focuses on four different portfolios to further analyze the importance of market analysis for hedge fund investments. The methodology of this paper is to first select the hedging method we will use, then select two different companies based on various factors such as the recent market and the future trend of stocks and bonds, hedge these two companies on stocktrack, and accept the results after two weeks of hedging. In this paper, four sets of portfolios will be used to enhance the credibility of the article. The results of the study show that the direction of the stock and the general trend of the market are particularly important for investors to make hedging transactions, and that if arbitrage strategies are used arbitrarily without taking into account the actual situation there is a high risk of investment failure. Thus, it is necessary to choose the appropriate arbitrage strategy for hedging based on the future direction of the market and stocks.
Keywords
go long and short, hedging strategies, peg ratio, arbitrage
References
1. Zölls, Frederik ; Brink, Alexander Private Equity und Hedge Fonds im Kreuzfeuer der Kritik 2009, Vol.58 (3), p.277-308
2. Zhou, Xuemei ; Liu, Qiang ; Guo, Shuxin The 52-week High Momentum Strategy and Economic Policy Uncertainty: Evidence from China Emerging markets finance & trade, 2022, Vol.58 (2), p.428-440
3. Easton, Peter D. PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital The Accounting review, 2004, Vol.79 (1), p.73-95
4. Sy, Amadou N. R. Systemic Regulation of Credit Rating Agencies and Rated Markets. 1st ed
5. Mare evidence lab Ralph Lauren Expects 32% Market Cap Return Over Next 3 Years
6. Ivanović, Vanja ; Vejzagić, Vanja RISK MANAGEMENT THROUGH HEDGE FONDS ourism and hospitality management, 2005, Vol.11 (2), p.155-161
7. Suzuki, Kiyoshi Optimal pair-trading strategy over long/short/square positions-empirical study Quantitative finance, 2018, Vol.18 (1), p.97-119
8. The software side of life Snap: Sidelined Until Execution Improves, Despite Recent Dead Cat Bounce Aug. 26, 2022 10:03 AM
9. Discount fountain PVH Corp.: Potential For Significant Rebound Despite Risks Jun. 21, 2022 10:47 AM
10. KAROLYI, G. ANDREW ; TABOADA, ALVARO G.Regulatory Arbitrage and Cross-Border Bank Acquisitions The Journal of finance (New York), 2015, Vol.70 (6), p.2395-2450
11. seekinhalpha
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 2nd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-915371-75-1
- ISBN (Online)
- 978-1-915371-76-8
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/16/20230987
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited